Some technologies distruptive to move fast. Others move too quickly.
But just because technology is moving too fast, this does not mean that technology will be the next big thing. Rather, the opposite is usually true. Revolutionary technology is moving too fast, just because there is so much unmet demand. Thus, if you do not demand preferences change dramatically, that technology will inevitably transform into the next big thing.
Too quickly just means that technology is bound to hit some bumps.
Now, it seems, a lot of industry violations of technology moving too fast. Stocks with exposure to these “too fast” technology will experience some short-term turbulence.
But in the long run these technologies are going to change the way the world works. And the same shares that will experience short-term turbulence will also be long-term winners.
Here is a list of 5 of these “too fast” technology, and shares a great impact on them.
Breakthrough Technologies Are Developing Too Fast #1: Autonomous Driving
We’ve all heard about the huge amount of money, time and effort in the pursuit of fully Autonomous driving. One day, we will inevitably have self-driving cars worldwide, the mortality rate of driving will be significantly lower and the traffic headaches will be significantly reduced. This is the future.
But only because Autonomous driving is the future, this does not mean that the road ahead will be without hiccups. Recently, Autonomous driving has become a “too fast” technology. Last year, self-driving car from Tesla Inc (Nasdaq:TSLA,) was involved in an accident in Florida. This year, self-driving car from uber got into a fatal accident in Arizona.
The consequences of these accidents is not enough. Chipmaker and Autonomous driving leader of NVIDIA Corporation (Nasdaq:nvda) suspended self-driving tests. Uber was barred from Autonomous test vehicle in Arizona. Lately a lot of negative press about the risks of Autonomous driving.
But the effects are not large, either. Most automakers are with their Autonomous driving permit, despite the recent incident. This is because they are focused on the big picture idea that Autonomous driving, in scale, is much more effective and safe than the person behind the wheel (almost 1.3 million people die each year in road accidents).
In the short term, companies with a large exposure to self-driving will to fight. The header names in the field include Tesla, NVIDIA, alphabet Inc (Nasdaq:goodbye) and Apple (US:Analytics). Don’t expect big moves higher in these names in the near future.
But in the long run these stocks will roar higher. Autonomous driving only a few years separate us from reality in scale.
The Joint Use Of Advanced Technology Is Moving Too Fast #2: Data And Analytics
Source: Shutterstock From
Due to the leakage of information that was prevalent in Fallout, Facebook Inc (Nasdaq:FB) turned into the big bad wolf from wall Street that investors like to avoid, and regulators love to hate.
The main question is how Facebook uses a large database of consumers. But there is nothing wrong with using data to make informed decisions. Facebook just makes it scale. And they are not alone. All Internet companies do this, including Twitter Inc. (stockmarket), snap Inc. (US:snap), Google, uber, and Airbnb Amazon.com ink. (Nasdaq:events of the week), and Apple (Yes, even Apple CEO Tim cook, despite the comments).
Even non-Internet companies are jumping into the space of data exchange. Nike Inc. (US:NKE) has acquired data Analytics startup, presumably to help them better understand consumer behavior and create products that better align with consumer preferences.
The problem with Facebook is that they have zero transparency of data exchange. As soon as Facebook brings transparency to your processes and allows users to see (to some extent) what is being done with their data, all these problems will disappear.
In the short term, stocks with a large exposure information, were not the biggest winners. That includes Facebook, Twitter, snap, Google, Amazon, Apple, important (NYSE Ticker:shop), and a bunch of others.
But again, these stocks will be the big winners in the long run due to their impact on big data markets. Just how Autonomous driving, the data in the future.
Breakthrough Technology Is Evolving Too Quickly #3: Decentralization
Source: Shutterstock From
One of the most powerful topics in the world of technology now is decentralization.
Over the past few years, technology markets konsolidiruyutsya around selected, namely FAANNG group (N is the newest program nvda) . It worked well. But, it seems that investors are tired of this consolidation. Thus a boom of bitcoin has happened. Cryptocurrency is all about decentralization. Indeed, when the booming cryptocurrency went mainstream, everyone was talking about how bitcoin was a bubble, but blockchain (fundamentals of decentralization) was the future.
Cryptocurrency and blockchain hype has cooled down. But the themes of decentralization remain strong. Uber, Airbnb, and GrubHub Inc. (USA:grub) has created a billion-dollar Empire, built on these principles of decentralization. YouTube, Instagram, and snap also built a billion dollar Empire on the same principles of decentralization, transforming consumers into creators.
Because the hype blockchain cools, stocks with big exposure to the principles of decentralization can fight in the near future. This group includes important, Google, GrubHub, Netflix, Inc. (Nasdaq:NYSE: nflx), Facebook and a bunch of others.
Long term, however, these stocks will roar higher. Processes and systems are increasingly moving towards decentralization. Companies in the forefront of this trend will benefit in the long term.
Breakthrough Technologies Are Developing Too Fast #4: E-Commerce
Source: Shutterstock From
One thing all seem to know about retail is that E-Commerce is killing traditional Commerce.
But this is not true. The majority (90%) of all retail sales still occur in physical format. Shopping malls reinvent themselves as multi-purpose entertainment centers with shops, restaurants, cinemas, gyms. And it works. Retailers across the Board reported a significant improvement in comparable sales during the holiday period 2017.
Yes, e-retail will grow at a much faster pace. But there is a reason why the world pioneers of e-Commerce, Amazon and alibaba group holding Ltd (NYSE Ticker:Baba), not making big pushes in offline retail.
Thus, businesses with t In the E-retail like Amazon, Alibaba, JD.Com Inc. (ADR) (code Nasdaq:JD), important, PayPal holdings Inc (Nasdaq:PYPL), and others may be a little ahead of ourselves in the short term, as growth cools.
But these stocks will head higher in the long term for two reasons. First, e-retail will grow at a very healthy pace over the next few years. Two, most of those players are gaining exposure to offline retail too, and turning to companies with Omni-channel retail.
Breakthrough Technologies Are Developing Too Fast #5: Internet TV
Source: The Rock
Over the past few years, Netflix for the first time in the era of Internet television. When they started on this path, some people laughed, some cried, but most do not believe it will work.
Fast forward a few years, and Netflix is going to the world domination of the entertainment industry.
The era of Internet television is here. Internet TV offers consumers enhanced services (on-demand and a few flat screen and functionality among a seemingly limitless library of Content) at a lower price (around $10 a month for Netflix versus $100 a month for cable). Because of this, Internet TV will beat out linear television in the long term.
But this trend was ahead of him in the near future. Just look at Netflix stock. It’s up to about 400% over the past 3 years and 60% in 2018 (and it is only in April). Everyone wants a piece of the pie of Internet TV. But this trend needs to be cooled.
Expected short-term turbulence in the Internet television names like Netflix, Apple, roku Inc. (Nasdaq:rock), Walt Disney. (US:dis), Google and at&T Inc. (IndexT) (not to sleep on the at&T network directv now, that can more than compensate for traditional television decreases). In the long term due to the convenience and cost advantages of Internet TV, these names will head much higher.
At the time of this writing, Luke Lango was for a long time know that aapl, FB, shop, USA, nflx, Baba, Dee, PYPL, and dis.